QUESTION:
My company is thinking about offering a student loan repayment benefit for our employees. How does it work?
ANSWER:
This benefit, which pays off anywhere from a few hundred to a few thousand dollars a year in student loan debt for employees, has grown in popularity among Fortune 1,000 companies and may make sense for smaller companies.
To protect your investment, define parameters such as eligibility, reimbursement limits and consider implementing retention agreements to require employees to stay with the company for a period after receiving benefits. Also, ensure that you reimburse for education related to your company goals. Consult your tax pro for guidance.